Construction begins on AXA IM Alts’ ¥27 billion (€220 million) Japanese multi-storey logistics facility
Development of the four-storey facilitiy is due to complete in 2022
AXA IM Alts, a global leader in alternative investments with c. €153 billion of assets under management1 , announces that construction has begun on a 79,095 sqm site in Kisosaki, near Nagoya, Japan, to develop an institutional grade, multi-let logistics facility. The development site was acquired in March 2020, on behalf of clients and through AXA IM Alts’ market leading Real Assets platform, which is the leading2 real estate portfolio and asset manager in Europe, alongside ESR, a leading Asia-Pacific logistics real estate platform. The site was purchased from the Mie Prefectural Government and represents a total investment size of ¥27 billion (€220 million).
The development will be spread over four storeys and is targeting practical completion by the end of April 2022. With flexible unit sizes ranging from c.5,000 sqm, the c.155,000 sqm building will be suitable for a diverse range of occupiers, who will also benefit from a range of best-in-class amenities. Sustainability has been a key consideration, and the asset is being designed to utilise solar power as well as to meet CASBEE A classification standards. ESR will be responsible for the development phase and support on the leasing programme and management of the completed asset, with marketing for the leasing of the asset currently underway.
Nagoya is the capital of the Aichi Prefecture and the country's fourth most populous city, with over two million inhabitants. Nagoya is one of the country's major ports, and the site’s suitability as a distribution hub is enhanced by its strategic location just a half hour’s drive from the Nagoya CBD. Also significant is the infrastructure investment planned for the area, including an extension of the Isewangan Expressway.
This transaction expands AXA IM Alts’ c. €2.9 billion global logistics portfolio3 and confirms the ambitions of its Real Assets platform in the logistics sector in Japan, whilst further cementing its relationship with ESR. It follows the announcement in 2019 that AXA IM Alts had formed a long term Japanese core logistics joint venture with ESR, alongside a leading sovereign wealth fund, through the acquisition of a portfolio of six modern logistics assets for over ¥100 billion (c. €807 million), as well as the acquisition of a Prime A logistics asset in the Greater Tokyo area (Kuki) in August 2020.
Laurent Jacquemin, Head of Asia Pacific at AXA IM Alts, commented: “This is a rare opportunity to acquire a well located site suitable for the development of a Grade-A logistics facility, an asset class that has proved resilient against the backdrop of the global pandemic, in a region where investment activity is set to benefit from supportive market fundamentals. It is yet another example of our ability to leverage the relationships we have forged with local partners across the region to successfully originate opportunities on behalf of our clients that offer both asset class diversification and which support a range of investment strategies. At the same time, being able to leverage our development expertise to take on this project in what is a maturing e-commerce market allows us an opportunity to capture outsized returns, whilst also demonstrating our conviction call that the underlying structural shifts impacting the Japanese logistics sector are likely to support further yield compression.”
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About AXA IM Alts
AXA IM Alts is a global leader in alternative investments with c. €153 billion of assets under management as at 30 September 20204 , across real assets (real estate & infrastructure), private debt & alternative credit and private equity & hedge funds. AXA IM Alts employs over 700 people located in 16 offices around the world and serve the needs of more than 350 clients from Europe, North America, Asia Pacific and Middle East. We are a global leader in real assets investment with c. €102 billion of assets under management, the number one property portfolio and asset manager in Europe5 , and one of the largest worldwide.
About AXA Investment Managers
AXA Investment Managers (AXA IM) is an active, long-term, global, multi-asset investor. We work with clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. With approximately €830 billion in assets under management as at end of September 20206 , AXA IM invests through two distinct business units AXA IM Core and AXA IM Alts and employs over 2,360 employees around the world who operate out of 28 offices across 20 countries. AXA IM is part of the AXA Group, a world leader in financial protection and wealth management.